Shipbuilding contract for Nautilus rescinded

The shipbuilding contract for the establishment of the Nautilus Production Support Vessel (PSV) has been rescinded.

Fujian Mawei Shipbuilding Ltd, the owner of the shipyard where the PSV is being built, rescinded the shipbuilding contract with MAC Goliath Pte Ltd after the contractor failed to pay the third installment of the contract price  of ~US$18m + interest (K56 million).

MAC is the contractor engaged by Nautilus to procure the construction of the PSV on behalf of Nautilus.

On December 11, 2017, Nautilus reported that Fujian Mawei Shipbuilding Ltd had notified them of MAC’s default.

Nautilus says notwithstanding the rescission of the shipbuilding contract by the Shipyard, discussions are continuing and the Company will issue further updates as matters develop.

Author: 
Cedric Patjole